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DTE meeting: Earnings up; clean energy groups protest

DTE Energy Co. shareholders at the company's annual meeting, at a private resort last week in Pennsylvania, were greeted by good financial news but also by environmental protesters who called for the state's largest utility to double down on its green energy investment.

DTE (NYSE: DTE) reported first-quarter net income of $326 million, or $1.84 per share, compared with net income of $234 million, or $1.34 per share, for the same period in 2013. Operating revenue for the first quarter was $3.9 billion compared with $2.5 billion for the same period in 2013.

The company said cold weather meant customers used more energy, resulting in the uptick.

DTE's revenue and net income has been on the rise during the past two years. For example, DTE reported net income of $661 million in fiscal 2013 on operating revenue of $9.7 billion compared with 2012 net income of $610 million on $8.8 billion in operating revenue.

"Extremely cold weather in the first quarter drove exceptionally high energy demand, which in turn, shaped our financial result compared with last year," said Gerry Anderson, DTE Energy chairman and CEO, in a statement.

But lining the road up to the meeting at The Lodge at Woodloch in Hawley, Pa., were five protesters with signs that called for DTE to "Make the Switch" and "Go Clean."

"We're primarily objecting to DTE's decision to continue shutting the public and ratepayers out of the decision-making process, as well as urging them to do more than the bare minimum when it comes to investing in clean energy technologies," said Marissa Luna, new media specialist at Engage Michigan, which represents the Clean Energy Now coalition.

The coalition, which lodged a similar protest last year, includes the Sierra Club, Clean Water Action, Environmental Law and Policy Center, Michigan Land Use Institute, Union of Concerned Scientists and Michigan Environmental Council.

Alejandro Bodipo-Memba, DTE's manager of media relations, said DTE has invested the most of any utility company in Michigan in renewable energy. DTE now produces 9.5 percent of its energy from wind, solar and other renewable sources.

"We are continuing to work in that space and add more, primarily in wind," Bodipo-Memba said. By 2015, DTE expects to invest about $1.3 billion to achieve its state-mandated 10 percent goal.

Luna said DTE historically has held its shareholder meetings in Detroit. Last year, however, DTE moved its meeting to New York City and this year to the Pennsylvania resort town.

Bodipo-Memba said DTE located its meeting in Pennsylvania this year because it wanted to show its board of directors the company's investment in the Bluestone Pipeline operations.

"The meeting went very well, and we certainly don't view it as a protest," said Bodipo-Memba, noting that Sierra Club members spoke at the meeting. "The evening before, a couple of members of the Sierra Club met with management and had a productive conversation."

Last week, the Clean Energy Now coalition delivered a letter with more than 150 signatures from small-business owners and environmental groups that expressed support for more renewable energy and energy efficiency to DTE's headquarters in Detroit and Ann Arbor, Luna said.

Bodipo-Memba said DTE is formulating a response to the letter. He said DTE has engaged in discussions with many environmental groups in the past over its energy policy.

"Investing more in clean energy technologies will attract more businesses to our state and create jobs while acting as a safeguard in protecting the Great Lakes and public health," said Eric Keller, campaigns director at Michigan Clean Water Action, in a statement to Crain's.

"DTE's investments in renewable energy and energy efficiency have proven to be cost effective and profitable, which is a win-win for shareholders and ratepayers," Keller said.

By 2015, DTE plans to generate a total of 22 megawatts of solar power, which includes 15 megawatts from utility-owned plants and 7 megawatts from customer-owned projects.

But Luna said DTE should invest more into solar and other renewable energy sources. She said DTE has one of the most coal-dependent energy portfolios of any utility in the country.

Public health experts have said pollution from coal-fired power plants can cause asthma, respiratory illnesses and cardiovascular disease, among other conditions.

But it is not just DTE's 11 coal-fired plants. Michigan has a total of 23 power plants fueled by coal and owned by Consumers Energy Co., DTE, Lansing Board of Power and Light, Holland Board of Public Works, We Energies and Michigan State University that supplies about 65 percent of the state's total energy production. Renewable supplies about 8 percent, which is on track to hit 10 percent by 2015, according to the state's renewable energy mandate.

From a financial standpoint, DTE is projecting strong earnings. This fiscal year, for example, DTE said it is projecting operating earning share prices at $4.20 to $4.40 per share.

"We are off to a good start financially, as well as operationally, in the first quarter," said Peter Oleksiak, DTE Energy senior vice president and chief financial officer, in a statement.

"DTE Energy will continue to focus on maintaining solid earnings and cash flow along with a strong balance sheet, while providing our customers with clean, safe and reliable energy at an affordable price."